Financial Advisors Managing 401(k)s - Say it Ain't So

Advances in technology are not always good for everyone.  New technology allows financial advisors to access client retirement plans and "actively manage" these accounts for their clients.  This is great for financial advisors, not so much for clients.  Don't fall for this nonsense. 

Besides owning a home, retirement plans are investors largest asset.  It makes no sense for a financial advisors to charge 1% - 2% to invest in "Institutional Asset Managers" (hint, over the past 20 years 90% of active managers have underperformed their benchmark*)  The difference between earning 7% on $100,000 and 5% on $100,000 over 20 years is $121,639.  

Maybe new technology can allow financial advisors to monitor your house and charge a fee.  When will it ever stop.  

Low fees are an investors best friend.

* https://www.spglobal.com/spdji/en/documents/spiva/spiva-us-mid-year-2023.pdf